Business Report

The Country s and Region s Financial HealthEconomic IndicatorsEconomic indicators show that as a developing region , Ghana has a favorable scotch and financial performance especially comp atomic number 18d to the former(a) countries in the piece . The gross house servant help product of the pastoral was estimated to be 59 .15 billion for 2006 which amounts to 2600 GDP per capita . These figures showed that in that watch was a healthy growth of 5 .7 in that form (CIA , 2007Other important factors that must be considered before devising an investment decision in the country be spirited change , interest and fanfare order which constitute been adversely touch by the increasing prices of petrolImport and ExportsThe country earns foreign alter primarily from export of florid and cocoa (CIA , 2007 ) and the increasing prices have extend to a lot of growth in the country (EDC , 2006 . Its major(ip) imports include capital goods and petroleum (CIA , 2007 . This has an obvious way extinct on the cost of production within the country . even so , the government supports industrial growth through inunct subsidies and new(prenominal) such measures . Such measures put a lot of exceed of Ghana s budget deficit . Therefore in compliance with its fiscal policy of reducing budgetary deficit and domestic debt , on that point has been a recent reduction in crude subsidies (EDC 2006Stock MarketGhana has one stock throw called the Ghana Stock merchandise which has 22 listed companies by the end of the 1990 s which are of mainly of up-to-dateness , cocoa , banking and brewing industry . However , market proceedments are mainly determined by the Ashanti Goldfield stocksLocal Exchange Rates and TrendsThe currentness of Ghana is called Ceti (GTC . Till the early 1980 s the exchange rate of the spot was artificially maintained . But once! this policy was abolished and the favourable was devalued and floated its value began to decrease significantly .

In 1995 , a policy to use exchange rate to control collect was adopted which lead to considerable intervention in the exchange rate market . The exchange place continued to force out upwards until the end of the 90 s . However , since the tightening of the financial and fiscal policies , lower debt service payments and lower pretentiousness rate the exchange place have become quite entertain in the past five years (EIU , 2006Figure SEQ Figure \ Arabic 1 : Cetis per US dollar (Source CIA Fact book 2007Currency comprise or Repatriation Issues to Be AddressedWith the proactive efforts to bring down inflation rate to a single digit figure by the end of 2007 (Coutsoukis , 2004 , policy makers have again adopted the design of using exchange range to control inflation by using donor aid and remittances to buy Cetis to control currency supply Thus , even though , the exchange rates are stabilizing in nominal terms the coercive exchange rate increased by 11 .5 in 2005 . Therefore , one has to consider whether the policy will be able to sustain the stability in the exchange rates in the future (EIU , 2006Market AnalysisWith the increasing global energy demands there has been...If you want to get a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper